News Headline Summary

Stocks in Europe opened broadly higher, however consumer goods related stocks have underperformed, with Danone in France down over 1% after it was reported that certain batches of milk powder in China may be affected by contaminated Fonterra whey protein

Analysis details (09:22)

- In related news, Parmalat shares halted in early Italian trade reacting to weekend news reports that the World’s largest dairy exporter Fonterra found bacteria in milk products.
- Bunds are also seen higher in early trade, with peripheral bond yield spreads marginally wider. Of note, there is no major supply due out today.
- There is little in terms of fresh macroeconomic newsflow, but this weekend/overnight saw the release of the latest Chinese Non-Manufacturing PMI data:
Chinese Official Non-Manufacturing PMI (Jul) M/M 54.1 (Prev. 53.9) and Business Expectations 63.9, highest reading in 2013.
Chinese HSBC Services PMI (Jul) M/M 51.3 (Prev. 51.3)